Semiconductor Fabs

The Scheme for setting up of Semiconductor Fabs in India shall extend fiscal support of up to 50% of project cost on pari-passu basis to the approved applicants. The scheme shall be appraised by the Expenditure Finance Committee chaired by Secretary, Department of Expenditure. The Expenditure Finance Committee shall determine the structure and quantum of fiscal support under the scheme for establishing the semiconductor fabs.

Semiconductor Fabs

  • ‘Scheme for setting up of Semiconductor Fabs in India’ has been notified on 21.12.2021. The scheme is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.
  • The Scheme extends a fiscal support for setting up of Silicon CMOS based Semiconductor Fab in India depending on the technology node.
    • 28nm or Lower - Up to 50% of the Project Cos
    • Above 28 nm to 45nm - Up to 40% of the Project Cost
    • Above 45 nm to 65nm - Up to 30% of the Project Cost
  • The structure and quantum of the fiscal support will be negotiated by the India Semiconductor Mission with the applicants who are selected on the basis of technological and financial evaluation of their proposals.
  • The fiscal support under the scheme shall be provided on pari-passu basis for a period of six years from the date of approval.
  • Apart from such fiscal support, Semiconductor Fabs set up in India will be supported through purchase preference in procurement of electronic products by the Government under the Public Procurement (Preference to Make in India) Order.
  • Companies / Consortia / Joint Ventures proposing to set up semiconductor fabs can apply under the scheme starting from 01.01.2022. The application period will be for a period of forty-five days which is extendable.
  • Government of India is under discussion with state governments for establishing semiconductor cluster(s) with world class infrastructure to meet the stringent power and water requirements of semiconductor fabs and display fabs. State governments shall also make available land, water and power at highly subsidized rate for the semiconductor cluster(s) and may offer additional incentives.

Scheme Details

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Objective

To attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.

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Eligibility

Companies / Consortia / Joint Ventures proposing to set up a Silicon CMOS based Semiconductor Fab in India for manufacturing Logic / Memory / Digital ICs / Analog ICs / Mixed Signal ICs / SoCs

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Tenure

Support under the scheme shall be provided for a period of six years. The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.

Procedure to Apply

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Applicant Details

Register and apply for the scheme through the application form section

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Proposal

Detailed Project Report

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Fee & Submission

Application fee- 10 lakhs per application (Non-Refundable)

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Approval

Support under the scheme shall be provided for a period of six years. The tenure of the actual fiscal support outflow may be extended based on the approval of the Minister of Electronics and Information Technology.